Could / should a self employed IT contractor take a mortgage
Discussion
Hi all
Wonder what your thoughts are on this one.
Self employed IT contractor with a guaranteed contract up until end of this year. Reasonably confident of a renewal or a perm position thereafter.
Good credit. First time buyer. Single, no dependants.
Properties in region of 160k. Deposit of approx 30k could be managed. Assuming repayments, bills and living costs thereafter of 1k per month approx I could cover a year of unemployement at least, prob 18 months. So no huge worries re. reasonable rainy days.
Should I be thinking of a mortgage, would I be eligible, what kind of rates would I be looking at and what approx monthly repayments would they translate into.
I have been hugely cynical or rising prices lately and the inevitable rate rising having a bit impact upon affordability for many people, and general economic environment come the next GE when I feel there will be more cuts and more pain. But looking at 2 bed houses with a drive in my area at 160k with some room for cosmetic improvements (no potential for extensions though so 2 bed will remain a 2 bed) it does not feel like a huge risk to be looking at these kind of properties and prices
thoughts appreciated
Wonder what your thoughts are on this one.
Self employed IT contractor with a guaranteed contract up until end of this year. Reasonably confident of a renewal or a perm position thereafter.
Good credit. First time buyer. Single, no dependants.
Properties in region of 160k. Deposit of approx 30k could be managed. Assuming repayments, bills and living costs thereafter of 1k per month approx I could cover a year of unemployement at least, prob 18 months. So no huge worries re. reasonable rainy days.
Should I be thinking of a mortgage, would I be eligible, what kind of rates would I be looking at and what approx monthly repayments would they translate into.
I have been hugely cynical or rising prices lately and the inevitable rate rising having a bit impact upon affordability for many people, and general economic environment come the next GE when I feel there will be more cuts and more pain. But looking at 2 bed houses with a drive in my area at 160k with some room for cosmetic improvements (no potential for extensions though so 2 bed will remain a 2 bed) it does not feel like a huge risk to be looking at these kind of properties and prices
thoughts appreciated
thanks all
yeah sorry im a limited company / director. Think its mostly the fact that I would be a first time buyer, against the fact I am dependant upon the contract renewals etc, so the unforeseen risk or the lack of familiarity is what is concerning
I am however nearing 35, so I guess I really should be doing something
what I do contracting wise is not easily transferrable - should my current contract not be renewed I would indeed find myself between contracts, I would estimate a good 3 - 6 months and probably then more likely to secure a perm position than another contracting position
the multiple of the daily rate thing seems to produce low loan amounts - but a quick glance suggests 3x annualised contractor rate is possible
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